Mark Burginger is the founder of Qubits and had the idea to create building toys that children can use to create 3D architectural structures, which are much more resilient than Legos and offer children an opportunity to create fun structures as part of playtime.
Burginger had prior experience in creating a balloon company that had done fairly well in terms of sales, pointing to his experience as a businessman.
He eventually sold that company and had the idea to create Qubits, which are based on designs drawn from nature.
Children can have loads of fun creating unique shapes that are flexible, making Qubits toys much superior to others in the market.
Mark decided to enter Shark Tank seeking a 90,000 USD investment while offering a 51% stake in the company, which was quite an offer for the sharks to turn down.
He pitches his idea to the sharks, showcases the toys, and explains the concept, which leaves Barbara quite intrigued and eager to learn more.
The sharks are quite suspicious about Mark offering such a large share in the company, which is unheard of and quite generous, leading to many questions.
Mark sets their minds at ease and informs them that he wants a strong board of directors and needs the sharks to really invest in his product so they can offer their expertise to make the company launch incredibly successful.
The sharks were initially quite impressed by hearing about Mark’s backstory and how successful he was with the balloon company.
However, once they realized that he had only made 8000 USD in sales from Qubits, they lost their enthusiasm.
Kevin points out that Mark would do better by seeking out a deal from one of the Big 4 toy companies.
He feels like there’s no point in investing in Mark’s mission if he hasn’t secured a deal with a reputable toy company, leading him to quickly opt out of the deal.
Robert shatters Mark’s bubble and points out that there’s too much competition and Burginger is wasting his time pursuing this particular venture.
Kevin Harrington also believes that Mark cannot hope to compete with Lego and backs out of the deal.
Barbara does not offer an explanation and also opts out of the deal.
Daymond John is the final shark that’s remaining and says that he’s impressed by Mark’s mission and offers him a deal.
However, he gives the condition that Mark will only receive investment if he manages to secure a deal with a major toy company.
Our Review of Qubits
Mark’s company was quite promising and could have been pretty successful had it managed to receive funding from one of the major toy manufacturers.
However, he could not land this deal, which means the deal at Shark Tank failed to materialize.
Daymond and Mark have still kept in contact, which means there might be other developments in mind that could potentially lead to a brighter future.
Eventually, under Daymond’s guidance, Mark got a deal with a toy distributor called Discovery Toys, which turned out to be pretty successful.
Discovery Toys has an uncommon home-party business model that gave Mark everything he needed to launch his company to the general public.
Qubits started getting a lot of sales after this exposure, resulting in an overnight success.
In 2021, the company was still in business and had managed to earn 1 million USD in annual revenue.
This is quite promising, and Mark may just be able to expand his business past its early stages into a stable and more established company.
Pros of Qubits
There are many pros to Qubits, which are described below.
- Qubits offer superior building toys that can be compared to Lego and other toy companies, making it possible for children to enjoy their playtime while learning how to build complex 3D structures.
- The company managed to secure a deal with a reputable toy company despite the deal with Daymond not going through, which speaks to Mark’s resilience.
- Mark successfully used his previous experience of creating a balloon company to his advantage and managed to create a new and promising venture that also yielded a high annual income.
Cons of Qubits
There are some cons to Qubits, which are described below.
- Qubits have a lot of competition from other more established brands like Lego, making it difficult for their toys to compete with the toy industry giants.
- Mark failed to generate enough sales prior to appearing on Shark Tank, resulting in a failure to secure investment from the sharks.
Who is Qubits For?
Qubits are building toys that are catered exclusively to children who enjoy making complex architectural designs as part of their playtime.
It may mostly appeal to boys of a certain age, but girls are in no way excluded from the target market.
Are There Any Alternatives?
There are many alternatives in the market since there are numerous more established toy companies selling similar products.
Lego is the main competitor that sells building toys, which is essentially the same product as Qubits.
However, Qubits may have better quality products that are designed to be stronger and more flexible than Lego, appealing to a wide target audience.
Our Final Thoughts
Qubits was an excellent venture that was founded by Mark Burginger, who played a significant role in bringing his company to life by offering innovative products that could compete with big toy companies like Lego.
Despite Mark not being able to secure investment from the sharks at Shark Tank, he persevered and closed a deal with Discovery Toys, which helped him get the exposure he deserved to put his products on the market.
Daymond and Mark kept in contact, and it is likely that Daymond helped him behind the scenes to link up with the right people and get funding to grow his business further.
If the idea weren’t promising and unlikely to yield high rewards, Daymond wouldn’t have offered his support.
The company continues to do well today, and Mark is earning more than 1 million USD in annual income.